Rationale for the need to use blockchain technology to record and control operations for the export of grain (the example of Ukraine)

Abstract

Despite the steady export of Ukrainian grain growth, the net profit from its sales does not increase, and most times, even falls. That is why it became necessary to find out the reasons for the current situation and find ways out of it. The most common method for solving such problems in the modern world is the implementation of blockchain and related technologies (smart contracts, cryptocurrencies, etc.). This article is devoted to studying the economic need for the use of blockchain technologies to monitor grain for export in Ukraine and the analysis of foreign experience blockchain implementation to agricultural supply chains to adapt the best practices to Ukrainian realities. As a result of a theoretical study, the article identified problems in Ukrainian grain export, analyzed the results of using blockchain to solve similar problems in foreign countries, and also identified ways to use world experience in this area. In addition, the authors offered practical recommendations for changing and complementing the existing technological and logistic stages of grain export in Ukraine. It was also found that blockchain technologies, because of their properties such as decentralized control, security, traceability, and control of transactions, could solve most of the problems that arise in the grain supply chain from grower to end consumer. The authors have proposed a generalized multilayer system that includes a "Data input layer", a "Data store layer", and a "User's layer", which most fully considers the peculiarities of agriculture in Ukraine. However, the question of these technologies introducing cost and the economic feasibility of their use for farms of various sizes remains is still unclear, and will be considered by the authors in their following works.